FX.co ★ Israel Swings to Budget Surplus in January After Deep December Deficit

Israel’s fiscal position recorded a sharp turnaround at the start of 2026, as the national budget balance moved from a significant deficit to a solid surplus within the space of a month.

According to the latest data updated on 9 February 2026, Israel’s budget balance improved from -24 billion in December 2025 to 17 billion in January 2026. The reversal marks a notable shift in the government’s monthly fiscal stance, with the January figure indicating that revenues exceeded expenditures after a deficit-heavy year-end.

The strong surplus at the beginning of 2026 may signal changing budget dynamics compared to late 2025, though the figures only cover a single month and do not yet define a broader trend. Investors and policymakers are likely to watch upcoming releases closely to assess whether this improvement in Israel’s budget balance will be sustained in the months ahead.